Executor Compensation and Fees (NL)
Show Table of ContentsIf the will does not specify how executor compensation should be calculated, the executor must follow provincial compensation rules (see NL calculator below).
The Newfoundland and Labrador Trustee Act specifies that executor compensation should be "adequate" for the services rendered, subject to court approval and the following maximums:
- 5% of the realized/disbursed value of the assets
-
0.4% of average estate value per year
(if not quickly distributable)
So, for example, an estate that disbursed $120,000 (to creditors and heirs) would normally generate at most $6,000 in executor fees. If the estate took 2 years to settle, the executor could charge at most an additional $960 for estate management.
All else being equal, the larger the estate, the smaller the fee percentage.
The following factors are also often considered in determining an adequate fee::
- Complexity of the estate
- Care and responsibility involved
- Time required
- Skill and ability demonstrated by the trustee
- How successful the trustee was
Note that assets which pass directly to named beneficiaries, such as life insurance policies, are generally not included in these calculations.
NL Compensation Calculator
EstateExec provides the following executor compensation estimator for NL estates, but please keep in mind that circumstances may vary, and that there may be special situations addressed by local custom or law. By using this estimator, you acknowledge that EstateExec provides any results as informational input only, not as legal advice, and cannot be held responsible for any inaccuracies for, or misunderstandings about, any given estate. See estimation methodology for calculation details.
You can use this calculator now, but if you use EstateExec to help you track the settlement process, it will automatically analyze your estate and suggest a value for the Disbursements field below (you can create an estate for free).
See also Compensation for general remarks on executor compensation.